Florida Statute 674.103 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 674
UNIFORM COMMERCIAL CODE: BANK DEPOSITS AND COLLECTIONS

View Entire Chapter

F.S. 674.103

674.103 Variation by agreement; measure of damages; action constituting ordinary care.—

(1) The effect of the provisions of this chapter may be varied by agreement, but the parties to the agreement cannot disclaim a bank’s responsibility for its lack of good faith or failure to exercise ordinary care or limit the measure of damages for the lack or failure. However, the parties may determine by agreement the standards by which the bank’s responsibility is to be measured if those standards are not manifestly unreasonable.

(2) Federal Reserve regulations and operating circulars, clearinghouse rules, and the like have the effect of agreements under subsection (1), whether or not specifically assented to by all parties interested in items handled.

(3) Action or nonaction approved by this chapter or pursuant to Federal Reserve regulations or operating circulars is the exercise of ordinary care; and, in the absence of special instructions, action or nonaction, consistent with clearinghouse rules and the like or with a general banking usage not disapproved by this chapter is prima facie the exercise of ordinary care.

(4) The specification or approval of certain procedures by this chapter is not disapproval of other procedures that may be reasonable under the circumstances.

(5) The measure of damages for failure to exercise ordinary care in handling an item is the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care. If there is also bad faith, it includes any other damages the party suffered as a proximate consequence.

History.—s. 1, ch. 65-254; s. 9, ch. 92-82.

Note.—s. 4-103, U.C.C.; supersedes s. 659.33.

F.S. 674.103 on Google Scholar

F.S. 674.103 on CourtListener

Amendments to 674.103

Annotations, Discussions, Cases:

Cases Citing Statute 674.103

Total Results: 16

Lamm Ex Rel. Ira v. State Street Bank & Trust

749 F.3d 938, 2014 WL 1410172, 2014 U.S. App. LEXIS 6868

Court of Appeals for the Eleventh Circuit | Filed: Apr 14, 2014 | Docket: 193478

Cited 35 times | Published

custodian banks, Mr. Lamm points to Fla. Stat. § 674.103(1), Florida’s version of U.C.C. § 4-103, which

Gathercrest Ltd. v. First American Bank & Trust

649 F. Supp. 106, 1985 U.S. Dist. LEXIS 18147

District Court, M.D. Florida | Filed: Jul 8, 1985 | Docket: 1198821

Cited 9 times | Published

standards are not manifestly unreasonable. Fla.Stat. § 674.103(1). The regular rules for determining whether

Ratner v. Central Nat. Bank of Miami

414 So. 2d 210, 34 U.C.C. Rep. Serv. (West) 228, 1982 Fla. App. LEXIS 19811

District Court of Appeal of Florida | Filed: Apr 13, 1982 | Docket: 1357654

Cited 8 times | Published

been no final settlement of the item. [3] Section 674.103(1) provides in part: The effect of the provisions

Wiand v. Wells Fargo Bank, N.A.

86 F. Supp. 3d 1316, 2015 U.S. Dist. LEXIS 15146, 2015 WL 518826

District Court, M.D. Florida | Filed: Feb 9, 2015 | Docket: 64300490

Cited 7 times | Published

banks to “exercise ordinary care.” Fla. Stat. § 674.103(1). This standard of ordinary care, however, applies

Bufman Organization v. Federal Deposit Insurance Corporation

82 F.3d 1020, 29 U.C.C. Rep. Serv. 2d (West) 905, 1996 U.S. App. LEXIS 11189

Court of Appeals for the Eleventh Circuit | Filed: May 13, 1996 | Docket: 473181

Cited 6 times | Published

checks under Florida law. See Fla.Stat.Ann. § 674.103(5) (1993); U.C.C. § 4-103(5) (1990). Second

SCADIF, S.A. v. First Union National Bank

208 F. Supp. 2d 1352, 48 U.C.C. Rep. Serv. 2d (West) 232, 2002 U.S. Dist. LEXIS 12962, 2002 WL 1473458

District Court, S.D. Florida | Filed: Jul 5, 2002 | Docket: 2449794

Cited 5 times | Published

to exercise ordinary care is set forth in section 674.103(5), Florida Statutes: The measure of damages

Securities Investor Protection Corp. v. Capital City Bank (In Re Meridian Asset Management, Inc.)

296 B.R. 243, 16 Fla. L. Weekly Fed. B 191, 2003 Bankr. LEXIS 835, 2003 WL 21729750

United States Bankruptcy Court, N.D. Florida | Filed: Jun 25, 2003 | Docket: 1861031

Cited 4 times | Published

care, presumptively in all its dealings. Fla. Stat. 674.103. If it is found there is no duty owed by

First Union Nat. Bank v. First Fla. Bank, NA

616 So. 2d 1168, 20 U.C.C. Rep. Serv. 2d (West) 1017, 1993 Fla. App. LEXIS 4230, 1993 WL 114778

District Court of Appeal of Florida | Filed: Apr 16, 1993 | Docket: 1726729

Cited 3 times | Published

regulations or by the local clearinghouse rules. See § 674.103, Fla. Stat. *1170 (1985). Thus, we are called

Gilbert & Caddy, P.A. v. JP Morgan Chase Bank, N.A.

193 F. Supp. 3d 1294, 2016 U.S. Dist. LEXIS 183865, 2016 WL 4613388

District Court, S.D. Florida | Filed: Jun 15, 2016 | Docket: 64309452

Cited 2 times | Published

the terms of Chapter 674. See Fla. Stat. Ann. § 674.103(1); see also Fla. Stat. Ann. § 670.501 (“the rights

Bank of America v. PUTNAL SEED AND GRAIN

965 So. 2d 300, 63 U.C.C. Rep. Serv. 2d (West) 1029, 2007 Fla. App. LEXIS 14525, 2007 WL 2700163

District Court of Appeal of Florida | Filed: Sep 18, 2007 | Docket: 1509182

Cited 2 times | Published

statutory provisions contained in chapter 674. § 674.103(1), Fla. Stat. (2002). Section 674.406(6), Florida

OK Moving & Storage Co. v. EGLIN NATL BANK

363 So. 2d 160, 25 U.C.C. Rep. Serv. (West) 202, 1978 Fla. App. LEXIS 16761

District Court of Appeal of Florida | Filed: Oct 5, 1978 | Docket: 1513642

Cited 2 times | Published

endorsements. The bank leans upon the provision of Section 674.103(5) which in part provides: "The measure of

Douglas Lamm v. State Street Bank and Trust

Court of Appeals for the Eleventh Circuit | Filed: Apr 14, 2014 | Docket: 266909

Published

custodian banks, Mr. Lamm points to Fla. Stat. § 674.103(1), Florida’s version of U.C.C. § 4- 103, which

Arkwright Mutual Ins. Co. v. Bank of America, N.A.

212 F.3d 1224, 41 U.C.C. Rep. Serv. 2d (West) 726, 2000 U.S. App. LEXIS 11737, 2000 WL 679165

Court of Appeals for the Eleventh Circuit | Filed: May 25, 2000 | Docket: 2038019

Published

Stat. § 674.103(1); 2 19B Fla. Stat. Ann., U.C.C. *1226 Comment to § 674.103 (1993)

Arkwright Mutual Ins. Co. v. Bank of America, N.A.

212 F.3d 1224

Court of Appeals for the Eleventh Circuit | Filed: May 25, 2000 | Docket: 395802

Published

U.C.C. Fla. Stat. § 674.103(1);2 19B Fla. Stat. Ann., U.C.C. Comment to § 674.103 (1993) (indicating

Bufman Organization v. Federal Deposit Insurance

82 F.3d 1020

Court of Appeals for the Eleventh Circuit | Filed: May 13, 1996 | Docket: 64024557

Published

checks under Florida law. See Fla.Stat. Ann. § 674.103(5) (1993); U.C.C. § 4-103(5) (1990). Second, Bufman

Republic National Bank of Miami v. Johnson ex rel. Guardianship Program of Dade County, Inc.

622 So. 2d 1015, 20 U.C.C. Rep. Serv. 2d (West) 1300, 1993 Fla. App. LEXIS 6442, 1993 WL 205505

District Court of Appeal of Florida | Filed: Jun 15, 1993 | Docket: 64698228

Published

consistently with the Uniform Commercial Code. See § 674.103(3), Fla.Stat. (Supp.1992). In light of the U.C